ADB provides $500m loan to develop 800MW power plant in Khulna

The Asian Development Bank (ADB) has provided US$500 million loan to develop a state-of-the-art 800-megawatt (MW) power plant in Khulna.

The fund will also be used for power transmission facilities along with associated connections to natural gas, according to the ADB.

The government signed agreements with the ADB on Thursday in this connection.

Muhammad Alkama Siddiqui, additional secretary of the Economic Relations Division (ERD) under Finance Ministry and Manmohan Parkash, country director of the ADB, signed the deals on behalf of their respective sides, at a ceremony in the capital city.

The total cost of the project is $1.14 billion, with the Islamic Development Bank contributing $300 million in co-financing and the government contributing $338.5 million.

The project is due to be completed by the end of June 2022, the ADB added.